Be the Friendly Financial “Stop” Sign

Impulsive and spontaneous spending is the most dangerous way to fall into debt. Yet, it is the most preventable. Accessibility to credit cards overshadows the light bulb that should be going off in our heads indicating: “Hey! You don’t have the money to buy that!”.

Even if an impulse spender can’t get the hint, there should be some responsibility from a caring friend or family member to point it out.

Everyone, including myself and all frugal consumers, will have times when the urge to buy something is just too overwhelming. It is priceless to have someone who assumes the responsibility to slap me, yell at me, or simply making me feel bad when I’m about to splurge. The result: I don’t spend.

Stop Them!
Ever since I’ve started blogging on personal finance, I have somehow inherited the role as the “stop” sign of money matters among my friends. I can’t remember how many times I’ve heard:

• Should I get _________________?
• I think I’m going to buy _______________________.
• I need to buy a _____________________.

I’ve shot down so many of these questions down that I probably helped save thousands. I may be gloating but I’m quite proud of helping others not get into debt.

That’s why I believe it is a humble undertaking to volunteer oneself as a friendly financial “stop” sign.

Enforce the Rule
A stop sign on the road is there to tell the driver to slow down, check for dangerous conditions, and continue when safe. The same purpose applies here.

You are not there to slam the brakes on your friend’s spending habits. Sincerely ask them to reconsider whether or not they really need it. Dismiss the question – “Can you afford it?” – because it doesn’t matter. The abundance of wealth does not justify wasting money on unnecessary things.

A few questions that can put a spending spree to a halt:

1. Do you really need it? If someone can live without something, that means they don’t need it and don’t need to get it.
2. Is there something else you have that can do the same job? We like new stuff instead of old stuff even if the old stuff perform just like the new stuff – so, why pay for the same thing twice?
3. Can you wait to buy it another time? I find that sitting on the idea of buying something for a few days will eventually cause the craving to fade. Then, I look back and feel great that I didn’t pull the trigger on a purchase.

Can’t Stop Them? Then Show Them the Way
When I can’t prevent a friend from spending, I advocate smart spending. “I know you want it really bad, but let’s find a good price before you buy it.” Always advise them to take a look around and look for coupons, discounts, and sales.

Spending is inevitable but saving money never hurt anyone.

Parents: The Ultimate “Stop” Sign
Parents will stick their noses and express their opinion in every corner of your life. My mom and dad have pretty much confronted any situation they feel uncomfortable about when it comes to my business.

After many years of my parents questioning every one of my major purchases, I’ve developed the routine of running it by them before heading out the door – so I don’t have to hear it from them when I come back.

Parents will tell us whatever they feel is right. They will dissuade us from spending $300 on a video game console or a designer handbag and therefore, they’re the ones holding us back from making a majority of purchases that we feel are necessities. Over the course of hearing “Don’t waste your money!” repeatedly, that statement will automatically replay itself in our minds.

There will be situations where we are the “stop” sign and other times when we need someone else to stop us. Despite being frugal in the eyes of my peers, I am also vulnerable to consumerism.

Have you had times when you were a financial “stop” sign? Do you turn to someone every time you are about to buy something big? How has it worked out for you and those around you?

(Photo credit: totalAldo)

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